Italy: New system for “tax rulings”

Italy: New system for “tax rulings”

A new “tax ruling” system will apply in Italy at the start of 2016. The new system reflects changes made by Legislative Decree no. 156. In general, a taxpayer requests a tax ruling from the tax authorities as to the tax treatment of a transaction or an interpretation of the tax laws.

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The new system includes new classifications for tax rulings: 

  • Interpello ordiniario—for interpretations of unclear tax rules
  • Interpello qualificatorio—for definitions of transactions that do not fit the definitions already provided in the tax law
  • Interpello probatorio—for confirmation that a taxpayer qualifies for certain tax benefits or regimes
  • Interpello antiabuso—for clarification as to whether one or more transactions fall within the scope of the abuse-of-law rule
  • Interpello disapplicativo—for the “disapplication” of specific anti-avoidance measures

The new system also revises the timing for a taxpayer to file a tax ruling application and the time period for the tax authorities to respond. The new tax ruling system further provides rules for when a request for a tax ruling is mandatory and when a tax ruling is option. For instance, a taxpayer must request a tax ruling in certain situations when anti-avoidance measures would be involved, but a tax ruling is no longer mandatory in situations concerning safe-harbour conditions and the controlled foreign corporation (CFC) rules.

 

Read an October 2015 report  [PDF 283 KB] prepared by the KPMG member firm in Italy: New tax ruling system for Italy

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